For business owners, years of time, energy and hard work go into getting their business off the ground, and growing from strength to strength. But what about when you get to the stage where you want to think about retiring, or winding down?
This guide will provide you with a broad overview of the issues you may need to consider, and perhaps a few areas to start thinking about, as you begin to consider ways to exit your business.
Firstly, before you can leave your business, you need to consider the impact that your leaving will have on the business and the people left to run it. What skills do you have, which are vital to the business? Do you perform a role that nobody else can?
You might need to go through a process of succession planning. This means that you may need to ensure that employees are developed and/or recruited, to fill these key roles within your company. The plan is to essentially line up and train up your replacement before you go. It’s sensible to do this for all roles, not just your own, if you think you could end up in a vulnerable position if someone was to leave.
Another point for consideration is your shareholding, if you have one. Is your company currently paying a dividend to shareholders? If it is, will this continue? Can the business afford to continue your dividends if you’re not also working in the business?
If the answer is Yes, you’re possibly all set. That’s an income stream for retirement. But what if the answer is No…?
Read all of Corryn Wild’s insightful advice and insights into business financial planning with our free-to-download PDF. Click here for the full guide.